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The key to a financially successful retirement is matching your expenses to your income. To do this yourself, or with a financial adviser, you'll need to have the following information:
1. A list of current expenses. Make a list of monthly expenses such as housing, food, transportation and utilities, as well as a list of annual or sporadic expenses such as medical bills, insurance, travel and education. Which expenses will go down, and which expenses will rise when you retire?
2. A sense of your retirement lifestyle. Where will you live? Will you continue to work part-time for a while? How often do you want to eat out, go to concerts or sports events, play golf or travel? What new expenses will crop up?
3. Your Social Security statement. Your Social Security statement estimates the size of your benefit if you start at age 62, normal retirement age (probably 65 or 66) or 70. If you don't have a current statement, call 1-800-772-1213 or go to www.ssa.gov to order one.
4. A breakdown of your employee retirement benefits. These include a traditional pension—one which pays a fixed amount on a regular basis—and assets in your 401(k), 403(b), 457 or other retirement accounts from current or previous jobs.
If you think you have a pension coming from a previous job, contact the employer to learn the status of your benefits and rules for receiving them. If you can't locate a pension from a previous private employer, contact the Pension Benefits Guaranty Corp., a government-chartered agency, for help in searching.
Ask current and past employers for an individual benefit statement summarizing the status of your 401(k) or similar plan. To learn what information your employers must provide, see the Department of Labor's online publication "Protect Your Pension."
5. Information on your IRAs. Compile a list of your IRA accounts and their current value.
6. A list of other savings and investment accounts in banks, brokerage houses, credit unions or other financial services institutions. To search for a bank account, a local or state government pension account or other financial assets you might have forgotten about, search on the website of the National Association of Unclaimed Property Administrators.
7. A forecast for future retirement savings and investments. Estimate how much money you expect to put into your IRA, 401(k), and any other vehicles for financing your retirement.
8. An estimate of your longevity. Don't short-change your lifespan. (See Five Common Misperceptions About Retirement Planning.) To figure out how long your retirement assets have to last, use Northwestern Mutual's "longevity game".
Now that you've compiled all this information, consult a financial adviser (see Find a Financial Adviser) and/or make some preliminary calculations yourself (see Sites to See: Financial Calculators) to determine if you're meeting your retirement goals.
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